Chipotle (NYSE: CMG) reported its first-quarter earnings on Wednesday, outpacing Wall Street’s estimates. The fast food company benefited from a recent increase in digital sales as in-app purchases surpassed in-person buying. Shares rose under 1% during extended trading.
The restaurant reported earning of USD5.36 per share, compared to the anticipated USD4.89 a share. Revenue amounted to USD1.74 Billion, meeting analysts expectations of USD1.74 Billion. Digital sales rose to USD869.8 Million in comparison to the previous year, driven by order-ahead purchases and the new drive-through “Chipotlanes.”
“As vaccines roll out and we get closer to moving past this pandemic, I believe Chipotle is well positioned for growth,” Brian Niccol, Chipotle Chairman and CEO said in the report.
“I’m excited about our future as we remain focused on innovating in culinary, leading in food with integrity, and providing convenient access inside our restaurants and through our expanding digital ecosystem,” he added.
Throughout the quarter Chipotle added items to its menu including cauliflower rice, for an additional USD2 cost, and quesadillas, an exclusive online buy. According to Niccol, 1 in 10 customers bought the quesadillas, permitting the company to reach its highest number of new consumers during March.
CFO, Jack Hartung revealed that Chipotle had increased delivery prices by 4% at the start of April to aid with the higher delivery costs. Furthermore, the company raised menu prices for delivery by about 13% within its fourth quarter.
“We haven’t seen a large amount of resistance from that, so I think that customers understand that a premium convenience experience has a premium cost associated with it,” said Chief Technology Officer Curt Garner in an interview.
Chipotle opted not to share a sales growth outlook for the remainder of 2021.